Analog Devices, Inc.

WBAG:ADI Stock Report

Market Cap: €99.5b

Analog Devices Valuation

Is ADI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ADI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ADI (€201.65) is trading below our estimate of fair value (€296.5)

Significantly Below Fair Value: ADI is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ADI?

Key metric: As ADI is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ADI. This is calculated by dividing ADI's market cap by their current earnings.
What is ADI's PE Ratio?
PE Ratio63.1x
EarningsUS$1.64b
Market CapUS$103.12b

Price to Earnings Ratio vs Peers

How does ADI's PE Ratio compare to its peers?

The above table shows the PE ratio for ADI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.8x
QCOM QUALCOMM
16.5x7.1%US$170.0b
MU Micron Technology
25x23.7%US$115.8b
NXPI NXP Semiconductors
19.4x9.1%US$52.7b
TXN Texas Instruments
34.1x15.2%US$168.8b
ADI Analog Devices
63.1x22.8%€103.1b

Price-To-Earnings vs Peers: ADI is expensive based on its Price-To-Earnings Ratio (63.1x) compared to the peer average (54.7x).

Price to Earnings Ratio vs Industry

How does ADI's PE Ratio compare vs other companies in the European Semiconductor Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ADI 63.1xIndustry Avg. 17.7xNo. of Companies7PE01632486480+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ADI is expensive based on its Price-To-Earnings Ratio (63.1x) compared to the European Semiconductor industry average (18.3x).

Price to Earnings Ratio vs Fair Ratio

What is ADI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ADI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio63.1x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ADI's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ADI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€201.65
€239.71
+18.9%
9.6%€280.72€201.83n/a28
Dec ’25€208.55
€238.29
+14.3%
9.3%€279.22€200.75n/a28
Nov ’25€208.45
€233.10
+11.8%
9.2%€269.84€180.47n/a27
Oct ’25€202.30
€229.46
+13.4%
9.2%€265.47€177.55n/a27
Sep ’25€210.60
€231.67
+10.0%
8.7%€265.62€177.65n/a27
Aug ’25€209.45
€235.72
+12.5%
8.5%€264.11€182.84n/a26
Jul ’25€209.35
€230.82
+10.3%
9.6%€261.72€181.18n/a27
Jun ’25€210.60
€230.08
+9.2%
10.0%€262.40€181.65n/a27
May ’25€189.30
€198.33
+4.8%
7.2%€237.29€172.83n/a28
Apr ’25€183.10
€193.10
+5.5%
6.2%€210.59€169.39n/a28
Mar ’25€179.30
€195.33
+8.9%
6.1%€212.80€171.16n/a28
Feb ’25€174.60
€190.70
+9.2%
6.7%€212.04€161.33n/a27
Jan ’25€180.45
€187.06
+3.7%
6.1%€206.10€160.30n/a27
Dec ’24€168.10
€185.21
+10.2%
5.6%€201.72€160.46€208.5527
Nov ’24€148.55
€189.22
+27.4%
6.1%€207.88€165.36€208.4527
Oct ’24€166.30
€187.26
+12.6%
5.9%€205.63€163.57€202.3026
Sep ’24€167.85
€185.64
+10.6%
5.9%€203.57€161.93€210.6026
Aug ’24€181.20
€187.30
+3.4%
6.4%€212.63€158.34€209.4526
Jul ’24€177.90
€187.52
+5.4%
6.0%€214.67€159.86€209.3526
Jun ’24€167.10
€192.05
+14.9%
6.5%€219.07€163.14€210.6026
May ’24€159.20
€198.50
+24.7%
8.0%€228.81€159.53€189.3027
Apr ’24€180.04
€203.69
+13.1%
8.2%€236.74€165.06€183.1028
Mar ’24€172.54
€203.69
+18.1%
8.2%€236.74€165.06€179.3028
Feb ’24€158.82
€177.98
+12.1%
6.6%€197.03€146.62€174.6028
Jan ’24€152.22
€183.69
+20.7%
8.0%€207.55€136.79€180.4528
Dec ’23€162.90
€183.38
+12.6%
7.9%€209.00€137.75€168.1027

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/19 16:41
End of Day Share Price 2024/12/19 00:00
Earnings2024/11/02
Annual Earnings2024/11/02

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Analog Devices, Inc. is covered by 59 analysts. 26 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Brett SimpsonArete Research Services LLP
James FontanelliArete Research Services LLP
James KelleherArgus Research Company